50
PGNiG
Key Developments:
••
commencement of work on the
Elektrociepłownia Stalowa Wola project – execu‑
tion of agreements concerning the operation of
the SPV;
••
planning and analyses for projects designed to
increase the PGNiG Group’s involvement in the
power sector.
Development
Initially, PGNiG Energia will focus on small and
medium-sized gas-fred cogeneration projects,
pilot biogas projects, and trading on the electricity
market. Once completed, the power projects will
materially stimulate the demand for natural gas in
Poland. PGNiG Energia’s activities will also extend
the value chain of the PGNiG Group and its product
offering through the sale of not only gas, but also
electricity and heat.
PGNiG’s strategic goal is to hold, by 2015, interests
in power plants equivalent to the aggregate
installed capacity of 300 MW, which will involve
the execution of a number of investment projects
of varying sizes. The most important and most
advanced project currently carried out by the
PGNiG Group is the construction of the CCGT in
Stalowa Wola. In addition to that project, PGNiG
Energia is performing other analyses and holding
negotiations which focus on large power genera‑
tion projects related to natural gas. The projects
are carried out in cooperation with partners from
the power sector.
PGNiG Energia also intends to construct biogas
units with capacities of up to 2 MW and thus gain
new capabilities, expertise and experience in the
renewable energy market. Heat generated by the
units will be supplied to local customers, while
electricity will be sold as green energy to the
power grid. The new biogas plants will also facili‑
tate the assessment of opportunities for possible
injection of biogas into the gas grid.
Combined Cycle Gas Turbine in
Stalowa Wola
In March 2011, PGNiG and Tauron Polska Energia SA
commenced the construction of the largest gas-
fred CHP plant. The project, whose value is esti‑
mated at PLN 1.9bn, will be completed at the end
of 2014. The construction of the CCGT in Stalowa
Wola is a joint venture of the two partners, re‑
fected in their respective strategies. Thanks to this
project, PGNiG will win a new large customer for
gas and develop its operations in the power sector.
The project involves the construction of a CCGT
generating 400 MW of electricity in high-effciency
cogeneration and 240 MW of heat in the form of
Power Sector
T h e P G N i G G r o u p ’ s e n t r y i n t o t h e p owe r s e c t o r w i l l
f a c i l i t a t e i t s t r a n s f o r ma t i o n i n t o a mu l t i - e n e r g y
o p e r a t o r . P G N i G E n e r g i a w i l l f o c u s o n t h e g e n e r a t i o n
o f e l e c t r i c i t y a n d h e a t a n d t r a d i n g o n t h e wh o l e s a l e
e l e c t r i c i t y ma r k e t , wh i l e P G N i G S A w i l l p r o v i d e i t s
e x i s t i n g a n d p r o s p e c t i v e c u s t ome r s w i t h a “ d u a l - f u e l ”
o f f e r i n g .
water for municipal needs and process steam for
the local industry. Given the emission limits on
greenhouse gases and the obligation to purchase
CO
2
emission credits introduced under the EU
energy and climate policy, gas-fred power plants
turn out to be not only environmentally-friendly
but also more economically viable than traditional
projects relying on other fuels.
The joint venture was initiated with the execution
by Tauron Polska Energia and PGNiG, on Novem‑
ber 20
th
2008, of a letter of intent confrming the
parties’ intention to cooperate. On December
7
th
2009, the parties entered into an agreement
outlining the project’s framework. Next, a project
execution agreement was negotiated and signed
on May 7
th
2010 by four parties, namely Tauron,
Elektrownia Stalowa Wola (a member of the Tau‑
ron Group), PGNiG and PGNiG Energia. On March
11
th
2011, an agreement concerning the operation
of Elektrociepłownia Stalowa Wola was executed.
The agreement sets forth a detailed procedure
for the project’s implementation and provides
a basis for developing its fnal business model.
Moreover, contracts for the sale of electricity and
supply of gaseous fuel were signed. The partners
will receive electricity in quantities proportional to
their interests in Elektrociepłownia Stalowa Wola
(the parties hold a 50-percent interest each in the
company). The annual gas supplies to the CCGT
in Stalowa Wola will amount to 540 million cubic
metres.
Stalowa Wola
Fuel:
coal
lignite
gas
hydro
Power:
CHP (in stalled)
power plant (installed)
power plant (planned)
Mission
Key Figures
Key Events
Letter from the
President of the
Management
Board
Management
Board
Letter from the
Chairman of the
Supervisory Board Supervisory Board
PGNiG on the Stock
Exchange
Strategy for the
PGNiG Group
until 2015
Exploration
and Production